Loading...
RDA MINS 19960316 MINUTES RANCHO PALOS VERDES REDEVELOPMENT AGENCY WORKSHOP MARCH 16, 1996 The meeting was called to order at Ladera Linda Community Center, 32201 Forrestal Drive, at 9:06 A.M. by Chair Lyon. The flag salute was led by Member Hollingsworth. Present: Members Byrd, Ferraro, and Hollingsworth, McTaggart, and Chair Lyon. Absent: None Chair Lyon explained that this workshop was intended to bring the public and new members of the Redevelopment Agency up to date regarding the landslide abatement efforts of the Redevelopment Agency, other agencies and private landowners, and also to provide the public with an opportunity to provide input to the RDA. Chair Lyon related a brief history of the landslide, indicating that usually the landslide was referred to as Portuguese Bend or Abalone Cove but that they were actually two separate slides, and there were also the Klondike Canyon and Flying Triangle slides, the latter being located in Rolling Hills. She explained that the first to move in recent times was the Portuguese Bend landslide, in 1956, when Los Angeles County moved 300,000 cubic yards of soil at the end of Crenshaw Boulevard, reactivating the ancient landslide. Ms. Lyon stated that there had been a level of success in slowing the earth movement and that dewatering wells had prevented any appreciable movement since 1980. She added that, in 1995, at Abalone Cove also, dewatering wells had been installed. Agency Attorney Carol Lynch was introduced and she explained that the Moratorium Ordinance,adopted by the City Council in 1978, separate from the Redevelopment Agency, was in response to movement inland from Palos Verdes Drive South. Ms. Lynch explained that the ordinance placed a moratorium on all building, grading, and any type of development and that it had been amended several times. She clarified that remedial grading and minor development to existing structures were allowed and that property owners could apply for an exclusion if the City Geologist and the City Council determined that the development would have no impact on the land stability. Agency Attorney Lynch discussed a recent supreme court decision in South Carolina in which a landowner sought to develop his property and it was determined that there had to be a balance between allowing development by a property owner along with keeping land stable and preventing a public nuisance or damage to adjacent properties. Charles Abbott, of Charles Abbott Associates, indicated the boundaries of the moratorium area, determined by the City Geologist, Dr. Perry Ehlig, shown with a heavy black line on two large aerial maps posted on both sides of the room, and discussed Initial Studies of the Moratorium Area. Ann Marie Davis, Director of the Abalone Cove Landslide Abatement District and the Klondike Canyon Geologic Hazard Abatement District (ACLAD and KCGHAD) related a history of both Districts and explained their funding and functions. Executive Director Bussey spoke on the creation of the Redevelopment Agency, including the reason for establishing the agency and the means of financing it. He explained that in order for a Redevelopment Agency to operate, a project area had to be defined and that the City of Rancho Palos Verdes had identified the landslide area as Project Area No. 1. Charles Abbott provided information regarding past efforts, future projects, and current geologic investigations in reference to the abatement of the Portuguese Bend and Abalone Cove landslides, and explained the U.S. Army Corps of Engineers Shore Protection Study. He provided several charts shown to the audience on a overhead project. RECESS AND RECONVENE Recessed from 10:15 A.M. to 10:25 A.M. Executive Director Bussey announced that there were reports available to the audience regarding the subjects on the agenda. Member Lee Byrd explained the Global Positioning System (GPS) and how measurements of land movement were determined using this method. Dr. Perry Ehlig, the City's Geologist, described the current land movement of the landslide areas. Agency Attorney Lynch gave details of the 1987 Landslide Settlement Agreement between local property owners and Los Angeles County. Brent Mattingly provided a status report on the Debt Service and its impact of landowner assessments, providing handouts for the audience to follow along. He described two options suggested by the consulting firm of Rosenow Spevacek Group, Inc. (RSG) for dealing with the Debt Service, an agressive (best) scenerio which would be advantageous to the City and the property owners. He also explained a RDA WORKSHOP MINUTES MARCH 16,1996 PAGE 2 conservative (worst) scenerio. He then described in detail the handouts which were provided to the audience. Member McTaggart asked Mr. Mattingly which scenerio Los Angeles County would be inclined to favor. Assist City Manager Mattingly replied that he believed that the County would favor the conservative scenerio. Agency Attorney Lynch concurred. Executive Director Bussey indicated that negotiation between the parties involved would be necessary before any conclusion could be reached. Chair Lyon stated that this subject could be placed on a future RDA agenda. Chair Lyon then called for public testimony. Jesus Gutierrez, (no speaker request form) said that he was pleased that the RDA Board was considering all options. He recommended that the $3 million allotted for sewers be used for this purpose, but only if this action would help keep the land stable. Mr. Gutierrez asked if holding tanks would be required when developing property if the sewers were not installed. Executive Director Bussey replied that there been quite a bit of discussion but there had been no decision yet. He added that final review was taking place to complete the Environmental Impact Report and the subject of holding tanks had not yet been addressed. Brent Mattingly clarified that the $3 million was not specifically set aside for sewers but could be used for other projects as well. Kathy Snell, (no address given) urged the Board to return the remainder of the money to the County and have the RDA issue tax increment bonds. She stated that, if the funds were not paid back, the owner of the bond could take over the agency and the land. Ms. Snell asked why the study, which cost $7,700,00, did not include tax increment funds for the Hon and York properties and said that, because of this ommission, she felt the study was a fraudulent document or someone was not paying attention. Executive Director Bussey responded that the RDA did have the have right to sell tax increment bonds even if it paid back the County, but could not sell these bonds soon. RDA WORKSHOP MINUTES MARCH 16,1996 PAGE 3 He said that the reason the County sold the bonds originally was because the RDA, with the projected tax increment, did not have sufficient funds to meet underwriting standards and there would be no market for the bonds. He added that Staff did not see the RDA selling bonds for a long time, unless there was a large increase in tax increment. As far as the study not including certain areas, Mr. Bussey explained that some areas outside the moratorium area were included because they still fell within the RDA area. In reference to the land owned by James York, lower filiorium, he said that it was not included because there was no application before the City, however, he said that there could be a request for development in that area soon. Mr. Bussey stated that Staff was reluctant to use projections for which there was no reasonable evidence to think would happen, especially with the impact of the economy. Executive Director Bussey said that there were no increases in tax increment for Peacock Flats now and, even assuming there might be development in Zone 2, the City Council had not approved such development. Al Edgerton, 59 Oceanaire Drive, asked if the taxpayers were paying for the ongoing Hon property exploration. Executive Director Bussey said that Palos Verdes Land Holdings, previously known as Hon Development, had placed funds in a trust deposit for exploration and, therefore, no taxpayer money was used. He added that there was some incidental City time used for monitoring but not enough to be significant. Mr. Edgerton asked if Dr. Perry Ehlig contemplated extensive earth removal and replacement in the Portuguese Bend slide area if justified by current exploration results. He also wondered if the City was evaluating the risks of destabilizing upslope land when this material was removed. If so, how, and if not, why not. Executive Director Bussey said that there was significant earth movement in Portuguese Bend. Mr. Edgerton asked if removing a driving force in one area and digging out for exploration was going to provide better understanding of the problem. Dr. Perry Ehlig said that in analyzing the proposed work, it was not a matter of taking dirt away and stockpiling it, moving from east to west, but by cutting one area at a time and stacking it, only a small slip is exposed at one time. Member Byrd clarified that there was no project of this type approved at this time and, if there was approval for such a project, it was not known from where the funds to pay for it would come. RDA WORKSHOP MINUTES MARCH 16, 1996 PAGE 4 Daphne Clarke, 10 Peppertree Drive, asked why there were no funds designated for work on the Altamira Canyon other than the $3 million for sewers. Executive Director Bussey replied that half the capital remained and the City was not assuming that the $3 million was assigned to particular project but would be appropriated as the Board decided. He said that the experts had indicated that the priority would be for drainage. Ms. Clark said that it appeared that the $3 million had been set aside for sewers. Neil Siegel,, 38 Cinnamon, stated that he found the options interesting and asked if someone would address the likelihood of feasibility. Mr. Siegel said that he lived in Zone 2 and that the City should buy the land from the owners if they wanted open space, not just take the value away from the property owners. Executive Director Bussey said that one legal issue was who owns bonds and the County feels that they do. It is hoped that negotiations would provide a lower interest rate or different payment methods and it is suspected that Staff will bring to the Board in the next months some recommendations to begin negotiations. Mr. Bussey indicated that, until that time, it was difficult to say how feasible the options were. Chair Lyon asked about Zone 2. Agency Attorney Lynch said that she would defer to the expertise of the City Geologist and Engineer to determine whether Zone 2 would be stable to a factor of 1.5 or less. She said that if this safety factor could be determined, it was possible that a claim could be made that Zone 2 ought to be exempt so that moderate development might be allowed on those properties. She said, however, that, at this time, it was difficult for the Board to provide this approval since they had no criteria. Executive Director Bussey said that the City Council had asked for an Environmental Impact Report (EIR) for that area but the geology of the land was a sensitive issue and the study was taking a long time. He added that the City was not relying entirely on Dr. Perry Ehlig but had asked for a second opinion. He reiterated that a safety factor of 1.5 was required for development. • Charles Stuart, 80 Narcissa Drive, said that he and his wife did not feel that it was responsible to have the property owners assessed because the improvements were of a more general natural, benefitting anyone driving on Palos Verdes Drive South, enjoying the beach, or considering development. He said that the property owners had been told that liens would not be placed on their properties believed that the bonds should be paid by tax increment, rather than assessments. Mr. Stuart explained that RDA WORKSHOP MINUTES MARCH 16,1996 PAGE 5 the agreement was accepted by the community in good faith but now some were questioning it, including himself, holding the City responsible for the financial commitment and for finding other ways to repay the bonds. He believed that it would be best to return the bond money to the County rather than continue to have interest accumulate. John Monks, 28757 Crestridge Road, said that he lived on Ridgecrest and owned some lots in Zone 2. He believed that the clarity and depth of the presentation were good but was surprised that the basic issues were still being re-examined . He said that it had been known for years that there was blight and the money was available to use and the experts had made recommendations for action. Mr. Monks said that he had attended an RDA meeting in September 1995 and that he had signed easement releases for sewer work on his property and had expected action. He believed that property owners needed answers because the value of their property was being affected and some had even bought land with the understanding that the experts' recommendations would be carried out. Mike Walker, Vice President, Palos Verdes Land Holdings Company, Inc., 25200 La Paz Road, Suite 210, Laguna Hills, CA 92653, reported that he had been assigned to the Portuguese Bend project in the last eight or nine months, and had been trying in that time to understand the constraints. He said that he understood that until the geology question was settled, the land would remain in the moratorium area and that there were also habitat issues as well. Mr. Walker stated that Palos Verdes Land Holdings had been spending money to help the RDA investigate the problems, met with Staff regularly, and were cooperating with the NCCP on sensitive biology questions. He hoped to receive input from the local residents. Maureen griffin, 5 Ginger Root Lane, thanked the Board for holding the meeting because she believed the residents needed to hear the bad, as well as the good, news. She stated that there had been many changes since the Horan settlement and that it was now a flawed and unworkable agreement. Ms. Griffin indicated that she had not wished to harm her neighbors when signing the agreement and believed the projects and the spending should stop and that the money should be returned to the County. Richard Bara, 1 Peppertree Drive, asked about the time frames for the ancient and modern landslides. Dr. Perry Ehlig said that the ancient landslide dated back about 125,000 years. The modern landslide began at Portuguese Bend in 1956, and at Abalone Cove in 1978 north of Palos Verdes Drive South(and seaward, a little earlier). Dr. Ehlig indicated that the Klondyke Canyon landslide began in approximately 1979. RDA WORKSHOP MINUTES MARCH 16, 1996 PAGE 6 Executive Director Bussey referred to the report, written by Dr. Ehlig in 1992 and distributed to the audience at today's meeting, which was an excellent source of information for landslide facts. Mr. Bara asked about the $10 million in the trust fund, and said that if it had not been spent, it should be. He believed that the economy had made the arrangement with the County unattractive and asked if the RDA could return the money to the County and regain it later. Mr. Brent Mattingly replied that the $10 million set aside had been earning interest of about 6.5% and very little had been actually been spent for maintenance activities. He indicated that part of the $10 million was repaid to county for expenditures incurred prior to receiving money and that part of it was repaid to the City for advances. Mr. Mattingly explained that there had been expenditures and earned interest which meant that the amount of money had remained about the same. Executive Director Bussey answered Mr. Bara's question about regaining the money by replying that there was nothing in the original agreement to indicate this was an option but that possibly this could be negotiated. Mr. Bara asked if the tax increment generated by entire area was paying off the debt service for the Abalone Cove area. Executive Director Bussey said that this was correct. Jack Downhill, 20 Vanderlip Drive, distributed a letter to the RDA Board, indicating the impact of the 1987 Horan settlement, stating that he wished to put the past behind and concentrate on a proposal to finally solve the problems, favoring the aggressive approach described by Mr. Mattingly. RECESS AND RECONVENE The meeting was recessed at 12:38 P.M. and reconvened at 12:47 P.M. Sharon Hegetsweiler, 6 Clovetree Place, disagreed with the statement made by the RDA that a new home could be built in Zone 2 for$400,000, and provided descriptions of homes and recent selling prices in the area. Ms. Hegetsweiler suggested that the monies be returned to the County and wondered if this decision would require the unanimous consent of the Horan litigants. She asked if the County bought back the bond issue itself and if there had been efforts to renegotiate the terms, expressing doubt that the County would be reluctant to RDA WORKSHOP MINUTES MARCH 16,1996 PAGE 7 negotiate. Ms. Hegetsweiler believed that the priority should be to abate the landslide rather than focusing on the fiscal impact . Ms. Hegetsweiler also expressed concern that the inability to add bathrooms to current homes without a holding tanks made development difficult. She also suggested that any development in Zone 2 be delayed until the effect of sewers might be determined. Executive Director Bussey pointed out that building a new home on a lot already owned would be less expensive than purchasing a different home because the land value was already there. Kay Bara, 1 Peppertree Drive, asked who would be involved in the negotiations with Los Angeles County. Executive Director Bussey said that the City would be represented by the RDA Board but he did not know exactly who would represent the County. Chris Haber, 11 Plumtree, thanked the Board and past Boards for progress made over the years on the landslide, urging that the money set aside be used for more improvements as intended. Lois Larue,, 3136 Barkentine Road, congratulated the RDA Board for organizing today's workshop but expressed displeasure that the meeting was not adequately noticed or televised and disputed some of the details of the reports given by City officials. Chair Lyon indicated that there had been 300 notices provided to the public, and that the workshop had been announced at the last City Council Meeting. Bill Griffin, 5 Ginger Root Lane, felt that today's meeting had been the best RDA meeting to date and that it had provided an excellent beginning for communication. He asked about a letter he had sent to the City in July 1995 regarding RDA funds collected at Portuguese Bend and applied at Abalone Cove and expressed frustration that there had been good intentions in the past to improve communication between the property owners and the RDA and then the plans dissipated. He hoped this would not happen again. RDA WORKSHOP MINUTES MARCH 16,1996 PAGE 8 Chair Lyon thanked everyone for attending, indicated that further discussion of the remainder of the agenda would be accomplished at a future RDA meeting, when more details of the financial history of the RDA might be provided, and declared the meeting adjourned at 1:04 P.M. C HAI ATTEST: AS A' J1 1 • CLERK n:1 INUTES:031696R.MIN RDA WORKSHOP MINUTES MARCH 16, 1996 PAGE 9